Paris, 25 January 2018
LVMH Moët Hennessy Louis Vuitton,
the world's leading luxury products group, recorded revenue of
€42.6 billion in 2017, an increase of 13% over the previous year.
Organic revenue growth was 12%. All business groups recorded
double-digit organic growth with the exception of Wines and
Spirits, whose growth in the second half was limited by supply
constraints.
With organic revenue growth of
11%, the trend seen since the beginning of the year continued into
the fourth quarter.
Profit from recurring operations
reached €8 293 million in 2017, an increase of 18%. Operating
margin reached 19.5%. Group share of net profit was €5 129 million,
representing growth of 29%.
Bernard Arnault, Chairman and CEO
of LVMH, said: "LVMH achieved another record year. The excellent
performance, to which all our businesses contributed, is due in
part to the buoyant environment but above all to the remarkable
creative strength of our brands and their ability to constantly
reinvent themselves. Continued innovation, entrepreneurial spirit
and the quest for excellence: all Maisons continue to assert these
core values while maintaining rigorous execution of their
strategies on the ground. In an environment that remains uncertain,
we can count on the appeal of our brands and the agility of our
teams to strengthen, once again in 2018, our leadership in the
universe of high quality products."
Key highlights from 2017
include:
-
Record revenue and profit from recurring
operations,
-
Growth in Europe, the United States and
Asia,
-
Good performance for Wines and Spirits in all
regions,
-
The success of both iconic and new products at
Louis Vuitton, whose profitability remains at an exceptional
level,
-
The acquisition of Christian Dior Couture, which
is showing excellent performance,
-
Growth at Fendi and Loro Piana,
-
The first year of integration of Rimowa, leader
in luggage excellence,
-
Strong momentum at Parfums Christian Dior,
driven by successful product innovations,
-
Excellent year for Bvlgari and good progress at
Hublot and TAG Heuer,
-
Growth at Sephora, which strengthened its
positions in all its markets and in digital,
-
Free cash flow of 4 754 million euros, up
20%,
-
Gearing of 24% at the end of December
2017.
Key figures
Euro millions |
2016 |
2017 |
% change |
Revenue |
37 600 |
42 636 |
+ 13 % |
Profit from recurring operations |
7 026 |
8 293 |
+ 18 % |
Group
share of net profit |
3 981 |
5 129 |
+ 29 % |
Free cash
flow* |
3 974 |
4 754 |
+ 20 % |
Net
financial debt |
3 265 |
7 178 |
+ 120 % |
Total
equity |
27 903 |
30 260 |
+ 8 % |
* Before
available for sale financial assets and investments, transactions
relating to equity and financing activities
Revenue by
business group:
Euro
millions |
2016 |
2017 |
% variation
2017/2016
Reported Organic* |
Wines & Spirits |
4 835 |
5 084 |
+ 5 % |
+ 7 % |
Fashion & Leather Goods |
12 775 |
15 472 |
+ 21 % |
+ 13 % |
Perfumes & Cosmetics |
4 953 |
5 560 |
+ 12 % |
+ 14 % |
Watches & Jewelry |
3 468 |
3 805 |
+ 10 % |
+ 12 % |
Selective Retailing |
11 973 |
13 311 |
+ 11 % |
+ 13 % |
Other activities and eliminations |
(404) |
(596) |
- |
- |
Total LVMH |
37 600 |
42 636 |
+ 13 % |
+ 12 % |
* With comparable
structure and exchange rates. The currency
effect was -3% and the structural impact was + 4%.
Profit from
recurring operations by business group:
Euro
millions |
2016 |
2017 |
% variation |
Wines
& Spirits |
1 504 |
1 558 |
+ 4 % |
Fashion
& Leather Goods |
3 873 |
4 905 |
+ 27
% |
Perfumes
& Cosmetics |
551 |
600 |
+ 9 % |
Watches
& Jewelry |
458 |
512 |
+ 12 % |
Selective
Retailing |
919 |
1 075 |
+ 17 % |
Other activities and eliminations |
(279) |
(357) |
- |
Total LVMH |
7 026 |
8 293 |
+ 18 % |
Wines and Spirits: strong
momentum in the United States and confirmed recovery in
China
The Wines and
Spirits business group recorded an increase in organic revenue
of 7%. On a reported basis, revenue growth was 5% and profit from
recurring operations increased by 4%. Champagnes grew steadily,
with volumes up 4%. With 7.5 million cases of cognac shipped in
2017, Hennessy's volumes increased by 8%, with significant growth
in China and the United States despite supply constraints in the
second half. All qualities contributed to this performance. The
inauguration of the new Pont Neuf bottling site, designed to
strengthen the production capacity of the Maison, was a highlight
of the last quarter. Colgin Cellars, a Californian estate producing
exceptional wines, and Woodinville whiskey were added to the
business group.
Fashion and Leather Goods:
excellent growth across all Louis Vuitton's businesses,
other brands strengthened their performance
The Fashion and
Leather Goods business group achieved organic revenue growth of
13% in 2017. On a reported basis, revenue growth was up 21% and
profit from recurring operations increased by 27%. Louis Vuitton
continued to demonstrate outstanding creativity across all of its
businesses, maintaining a good balance between innovations and the
strengthening of its iconic product lines. New products arising
from the collaborations with the artist Jeff Koons as well as the
Supreme brand, the launch of the brand's first smart watch and the
inauguration of the Maison Louis Vuitton Vendôme in Paris were
among the key events of the year. Christian Dior Couture, whose
business became fully consolidated within the Group in the second
half, achieved an excellent performance. The exhibition at the
Musée des Arts Décoratifs in Paris, celebrating the 70th
anniversary of the Maison, was a huge success. Fendi continued to
grow strongly. Loro Piana, Céline, Loewe, Kenzo and Berluti made
good progress. Marc Jacobs strengthened its product offering and
continued its restructuring. Rimowa completed its first year within
the LVMH Group.
Perfumes and
Cosmetics: successful innovations and rapid growth in Asia
The Perfumes
& Cosmetics business group recorded organic revenue growth
of 14%. On a reported basis, revenue growth was 12% and profit from
recurring operations increased by 9%. Parfums Christian Dior grew
market share in all regions, driven by the worldwide success of its
fragrance Sauvage and the vitality of its
iconic perfumes J'adore and Miss Dior. The makeup segment grew strongly, driven by
the Rouge Dior and Dior
Addict lines. Guerlain benefited from the successful launch of
Mon Guerlain and the international roll-out of
Guerlain Parfumeur boutiques. Parfums Givenchy had a very good
year, thanks in particular to its makeup, just as Benefit which
reinforced its Brow Collection. Fenty Beauty
by Rihanna, launched worldwide exclusively at Sephora, is enjoying
exceptional success.
Watches and
Jewelery: excellent year at Bvlgari and further progress at TAG
Heuer
The Watches &
Jewelry business group recorded organic revenue growth of 12%.
On a reported basis, revenue growth was 10% and profit from
recurring operations increased by 12%. Bvlgari achieved an
excellent performance and continued to gain market share thanks to
the strength of its iconic lines Serpenti,
B.Zero1, Diva and
Octo. Growth was particularly strong in Asia,
the United States and Europe. The inaugurations of the new
manufacturing facility in Valenza and the flagship store on Fifth
Avenue in New York are among the major events of the year. The
success of the Liens and Joséphine collections, and its continued upgrading,
drove Chaumet's growth. In the watch sector, TAG Heuer and Hublot
continued to grow. At TAG Heuer, a new generation of smartwatch
with multiple customization possibilities was launched in 2017.
Selective
Retailing: good performance at Sephora and DFS
The Selective
Retailing business group recorded organic revenue growth of
13%. On a reported basis, revenue growth was 11% and profit from
recurring operations was up 17%. Sephora continued to gain market
share. Its growth was particularly strong in North America and
Asia. A new territory, Germany, was inaugurated, while Sephora
expanded its online presence in Scandinavia, Mexico and the Middle
East. Le Bon Marché has created a new online shopping experience by
launching its digital platform, 24 Sèvres. The year 2017 was a
positive turning point for DFS, with better positioned markets,
especially in the second half. The new stores in Cambodia and Italy
continued to grow.
Cautiously
confident for 2018
In an environment that remains
supportive at the beginning of the year and despite unfavorable
currencies and geopolitical uncertainties, LVMH is well-equipped to
continue its growth momentum across all business groups in 2018.
The Group will maintain a strategy focused on developing its brands
by continuing to build on strong innovation and investments as well
as a constant quest for quality in their products and their
distribution.
Driven by the agility of its
teams, their entrepreneurial spirit, the balance of its different
businesses and geographic diversity, LVMH enters 2018 with cautious
confidence, and once again, sets an objective of increasing its
global leadership position in luxury goods.
Dividend increase
of 25%
At the Annual Shareholders'
Meeting on April 12, 2018, LVMH will propose a dividend of €5 per
share, an increase of 25%. An interim dividend of €1.60 per share
was paid on December 7 of last year. The balance of €3,40 per share
will be paid on April 19, 2018.
The LVMH Board
met on 25 January 2018 to approve the financial statements for
2017.
Audit procedures have been carried out and the
audit report is being issued.
Regulated information related to this press
release, the presentation of annual results and the report
"Financial Documents" are available at www.lvmh.com.
APPENDIX
LVMH - Revenue by
business group and by quarter
2017 Revenue
(Euro millions)
FY 2017 |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetics |
Watches
& Jewelry |
Selective
Retailing |
Other
activities & eliminations |
Total |
First Quarter |
1
196 |
3
405 |
1
395 |
879 |
3
154 |
(145) |
9 884 |
Second
Quarter |
1 098 |
3 494 |
1 275 |
959 |
3 126 |
(122) |
9 830 |
Total First Half |
2 294 |
6 899 |
2 670 |
1 838 |
6 280 |
(267) |
19 714 |
Third
Quarter |
1 220 |
3 939 |
1 395 |
951 |
3 055 |
(179) |
10 381 |
Nine Months |
3 514 |
10 838 |
4 065 |
2 789 |
9 335 |
(446) |
30 095 |
Fourth
Quarter |
1 570 |
4 634 |
1 495 |
1 016 |
3 976 |
(150) |
12 541 |
Total 2017 |
5 084 |
15 472 |
5 560 |
3 805 |
13 311 |
(596) |
42 636 |
2017 Revenue
(Organic growth versus same period of 2016)
FY 2017 |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetic |
Watches
& Jewelry |
Selective
Retailing |
Other
activities & eliminations |
Total |
First Quarter |
+13% |
+15% |
+12% |
+11% |
+11% |
- |
+13% |
Second
Quarter |
+6% |
+13% |
+13% |
+14% |
+12% |
- |
+12% |
Total First Half |
+10% |
+14% |
+12% |
+13% |
+12% |
- |
+12% |
Third
Quarter |
+4% |
+13% |
+17% |
+14% |
+14% |
- |
+12% |
Nine Months |
+8% |
+14% |
+14% |
+13% |
+12% |
- |
+12% |
Fourth
Quarter |
+6% |
+10% |
+14% |
+9% |
+14% |
- |
+11% |
Total 2017 |
+7% |
+13% |
+14% |
+12% |
+13% |
- |
+12% |
2016 Revenue
(Euro millions)
FY 2016 |
Wines
& Spirits |
Fashion
& Leather Goods |
Perfumes
& Cosmetic |
Watches
& Jewelry |
Selective
Retailing |
Other
activities & eliminations |
Total |
First Quarter |
1
033 |
2
965 |
1
213 |
774 |
2
747 |
(112) |
8 620 |
Second
Quarter |
1 023 |
2 920 |
1 124 |
835 |
2 733 |
(67) |
8 568 |
Total First Half |
2 056 |
5 885 |
2 337 |
1 609 |
5 480 |
(179) |
17 188 |
Third
Quarter |
1 225 |
3 106 |
1 241 |
877 |
2 803 |
(114) |
9 138 |
Nine Months |
3 281 |
8 991 |
3 578 |
2 486 |
8 283 |
(293) |
26 326 |
Fourth
Quarter |
1 554 |
3 784 |
1 375 |
982 |
3 690 |
(111) |
11 274 |
Total 2016 |
4 835 |
12 775 |
4 953 |
3 468 |
11 973 |
(404) |
37 600 |
LVMH
LVMH Moët Hennessy Louis Vuitton is represented in
Wines and Spirits by a portfolio of brands that includes Moët &
Chandon, Dom Pérignon, Veuve Clicquot Ponsardin, Krug, Ruinart,
Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château
Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg,
Belvedere, Woodinville, Chandon, Cloudy Bay, Terrazas de los Andes,
Cheval des Andes, Cape Mentelle, Newton, Bodega Numanthia and Ao
Yun. Its Fashion and Leather Goods division
includes Louis Vuitton, Christian Dior Couture, Céline, Loewe,
Kenzo, Givenchy, Thomas Pink, Fendi, Emilio Pucci, Marc Jacobs,
Berluti, Nicholas Kirkwood, Loro Piana and RIMOWA. LVMH is present
in the Perfumes and Cosmetics sector with Parfums Christian Dior,
Guerlain, Parfums Givenchy, Kenzo Parfums, Perfumes Loewe, BeneFit
Cosmetics, Make Up For Ever, Acqua di Parma, Fresh, Kat Von D and
Maison Francis Kurkdjian. LVMH's Watches and Jewelry division
comprises Bvlgari, TAG Heuer, Chaumet, Dior Watches, Zenith, Fred
and Hublot. LVMH is also active in selective retailing as well as
in other activities through DFS, Sephora, Le Bon Marché, La
Samaritaine, Royal Van Lent and Cheval Blanc hotels.
"Certain
information included in this release is forward looking and is
subject to important risks and uncertainties and factors beyond our
control or ability to predict, that could cause actual results to
differ materially from those anticipated, projected or implied. It
only reflects our views as of the date of this presentation. No
undue reliance should therefore be based on any such information,
it being also agreed that we undertake no commitment to amend or
update it after the date hereof."
Contacts |
|
|
Analysts and investors: |
Chris
Hollis
LVMH |
+ 33 1.4413.2122 |
|
|
|
Media: |
|
|
|
Jean-Charles Tréhan |
+33 1 4413.2620 |
|
LVMH |
|
|
|
|
France : |
Michel
Calzaroni/Olivier Labesse/
Hugues Schmitt/Thomas Roborel de Climens |
+ 33 1.4070.1189 |
|
DGM Conseil |
|
UK: |
Hugh
Morrison / Charlotte McMullen |
+44 203.514.0897 |
|
Montfort Communications |
|
Italy: |
Michele
Calcaterra/ Matteo Steinbach |
+39 02 6249991 |
|
SEC and Partners |
|
US: |
James
Fingeroth/Molly Morse/
Anntal Silver |
+1 212.521.4800 |
|
Kekst & Company |
|
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Source: LVMH via Globenewswire
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